Delhi HC Dismisses Revenue Appeals on India-Switzerland Treaty Issue in Light of Recent Ruling [Read Order]

The Delhi High Court has dismissed a batch of appeals filed by the Income Tax Department, in light of a recent High Court precedent. The Court reaffirmed its earlier ruling on treaty interpretation.

The appeals were filed by the Principal Commissioner of Income Tax (PCIT) against Indrani Sathe and Subhash Sathe for Assessment Years 2006-07 to 2011-12. The appeals sought to challenge a common order passed by the ITAT (New Delhi Bench), which had relied on the High Court’s earlier judgment in PCIT v. Sneh Lata Sawhney and Others.

During the hearing, counsel for the assessees submitted that even if the Department’s arguments were accepted, the appeals were liable to be dismissed in view of the recent judgment of the Delhi High Court in Principal Commissioner of Income Tax, Central-1, Delhi v. Sanjay Jain, decided on January 22, 2026.

It was pointed out that while the Sanjay Jain case dealt with the India-Hong Kong tax treaty, the present matters involved the India-Switzerland treaty, but the underlying legal issue stood covered.

Accepting the submissions, the High Court observed that the controversy was already settled by its judgment in Sneh Lata Sawhney, which had subsequently been followed and elaborated in Sanjay Jain.

Accordingly, the High Court dismissed all the appeals filed by the Revenue along with the connected applications.

The judgment was delivered by a Division Bench comprising Justice Dinesh Mehta and Justice Vinod Kumar on February 4, 2026.

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